The process of buying a home in the Netherlands may be different from the process you’re used to. You’ll have to consider the regulations and legislation, the tax benefits and the Dutch housing market. We’re here to help you, so buying a house may be easier than you thought.
As an expat, you may be eligible for a 30% tax facility, which means that you are not liable to pay tax on the first 30% of your income. This may increase your income, and therefore also increase the maximum amount of your mortgage. There are a number of conditions you have to satisfy to qualify for the 30% tax facility.
Arrange a free orientation meeting and a mortgage adviser will calculate your maximum mortgage based on your income.
In the Netherlands, you are allowed to borrow up to 100% of the property value. All additional costs, like the notary fees and transfer tax, should be paid from your own funds. If you don't have any money set aside, you may be able to pay these costs through a gift or loan from your parents. A mortgage adviser can advise you on your personal situation.
Your income is one of the factors used to calculate your maximum mortgage. This obviously means your salary, but it can also include allowances for overtime or bonuses. There are various types of income.
Arrange a free orientation meeting and a mortgage adviser will tell you exactly what can and cannot be taken into account when calculating your maximum mortgage. Afterwards, you will be given a document with a detailed calculation. You can use this to decide on a price range for houses want to buy.
When you buy a house, you pay more than the purchase price alone: you also have to consider other costs like transfer tax and estate agent, notary and appraisal fees, for example. Some of these costs are tax-deductible, however. Going through the various additional costs gives you a better idea of how much money you need to buy a house. And, of course, we are ready to help here too. During the free orientation meeting, the mortgage adviser will run through these costs with you.
If you are buying a home costing no more than €405,000 – or €429,300 if you will be taking one of the registered energy-saving measures – you will qualify for the National Mortgage Guarantee (known as ‘NHG’ in Dutch). This mortgage guarantee serves as a safety net for when you can no longer pay your mortgage due to a divorce or unemployment, for example, or when you are left with a residual mortgage debt after selling your home. It also gives you the assurance that you are borrowing responsibly by taking out an affordable mortgage.
What’s more, if you opt for an NHG-backed mortgage you’ll benefit from a lower mortgage interest rate. The NHG cost is 0.6% of the mortgage loan.
An energy-efficient home: it’s good for the environment, cuts your energy bills and makes for more comfortable living. An additional advantage is that you can get a sustainability discount on your mortgage interest if you buy a home with energy label A or B. Or you may be entitled to subsidies to make your home more energy-efficient.
If you’d like to know how you can make your home more energy-efficient, do the Energy Saving Check and get a personalised step-by-step plan. Good to know: if you are planning to take measures to make your new home more energy-efficient, you can sometimes borrow more than your calculated maximum mortgage.
A personal mortgage adviser: from the early stages of your house hunt until the mortgage has been secured.
Dutch mortgage market leader and expert in expats.
The whole process and mortgage application are in English, with English-speaking mortgage advisers.
